LendingTree Fall 2012 Housing Outlook Predicts Record Low Mortgage Rates
Sustainable Housing Market Recovery Contingent on Healthy Jobs Market, Upcoming Presidential Election to Create Greater Uncertainty
CHARLOTTE, N.C., Sept. 25, 2012 /PRNewswire/ -- With mortgage rates near record lows, home prices stabilizing and the home-buying season coming to a close, the autumn months prove to be unprecedented for the housing market. According to the LendingTree Monthly Mortgage Review, which provides an industry overview and tracks the lowest and average mortgage rates offered by lenders on the LendingTree network, the summer's average mortgage rate was 3.91 percent for a 30-year fixed rate mortgage, with the average home loan of just over $200,000. While mortgage rates are expected to remain low this fall, access to credit is expected to remain constrained for many borrowers.
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"Home values are beginning to improve just as we approach the close of the home-buying season," says Doug Lebda, founder and CEO of LendingTree. "Home prices are still below the levels they were five years ago, creating an excellent opportunity for first-time homebuyers to enter the market. Homeowners who want to refinance may find it is easier to meet loan-to-value requirements, however, mortgage lending overall is expected to remain tight due to continued uncertainty around housing regulations."
LendingTree Fall 2012 Housing Outlook:
- Mortgage rates slightly above record lows due to the Fed's efforts to aid economic recovery.
- Seasonal drop-off in home purchases, with refinances remaining relatively flat.
- Access to credit relatively tight due to uncertainty surrounding housing regulations.
- Upcoming Presidential election to create even further uncertainty.
- High home affordability even though prices are stabilizing and in some areas increasing.
- A sustainable housing market recovery is contingent upon a healthy jobs market.
The chart below shows the Top Ten States with the lowest average 30-year fixed mortgage rate from May 31 to September 3, 2012, with New Jersey taking the top position followed by Texas and Hawaii.
| Top Ten States With Lowest Average 30-Year Fixed Rate |
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| May 31, 2012 through September 3, 2012 |
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| State |
Average 30-yr Fixed Rate |
Average Loan Amount |
Average Credit Score |
| NJ |
3.836% |
$252,799 |
745 |
| TX |
3.840% |
$170,531 |
732 |
| HI |
3.847% |
$302,522 |
754 |
| CT |
3.851% |
$233,901 |
751 |
| MA |
3.856% |
$234,765 |
747 |
| WA |
3.857% |
$221,857 |
751 |
| NY |
3.859% |
$221,215 |
741 |
| CA |
3.860% |
$283,698 |
752 |
| VA |
3.861% |
$252,677 |
747 |
| MO |
3.864% |
$155,187 |
744 |
About LendingTree, LLC
LendingTree, LLC is the nation's leading online source for competitive home loan offers, empowering consumers during the mortgage, refinance or auto loan process. LendingTree provides an online marketplace which connects consumers with multiple lenders that compete for their business, as well as an array of online tools and information to help consumers find the best loan. Since inception, LendingTree has facilitated more than 30 million loan requests and $214 billion in closed loan transactions. LendingTree provides access to lenders offering mortgages and refinance loans, home equity loans/lines of credit, and more. LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ: TREE). For more information go to www.lendingtree.com, dial 800-555-TREE, join our Facebook page and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
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SOURCE LendingTree
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